22/04/2013 World Business Report


22/04/2013

Similar Content

Browse content similar to 22/04/2013. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

BBC News. Now for the latest financial news with Sally Bundock

:00:02.:00:12.
:00:12.:00:20.

Switched on - Philips focus on LED lighting and healthcare equipment

:00:20.:00:26.

is reaping rewards. It reveals its latest profits numbers today.

:00:26.:00:30.

The Shanghai autoshow has just opened and western car makers are

:00:30.:00:40.
:00:40.:00:52.

flocking to invest in production Welcome to World Business Report.

:00:52.:01:00.

We will also have news about a strike at Lufthansa. Its been a

:01:00.:01:04.

busy start to the year for the electronics giant Philips. It

:01:04.:01:08.

agreed to sell its audio and video unit and the Dutch company has just

:01:08.:01:12.

unveiled what it claims is the world's most efficient LED. Philips

:01:12.:01:16.

Chief Executive Officer Frans Van Houten - who has been at the helm

:01:16.:01:19.

for almost 2 years - is pushing the manufacturer into high-margin areas

:01:19.:01:22.

such as lighting products that save energy, and equipment for the

:01:22.:01:25.

health industry - moving the company away from its consumer-

:01:25.:01:29.

electronics past. The massive restructuring at Philips is saving

:01:29.:01:35.

the company 1.1 billion euros with 6,700 jobs cut. And it seems to be

:01:35.:01:39.

working. In a few hours time Philips will reveal its latest

:01:39.:01:44.

results. With me is William Mackie, an equity analyst at Berenberg Bank

:01:44.:01:53.

who follows Philips. We have had a strong resolves, will today be the

:01:53.:01:59.

same? Underlying and results will show an improvement in operating

:01:59.:02:09.
:02:09.:02:13.

profits. We will expect benefits from restructuring. You believe the

:02:13.:02:18.

shift away from consumer electronics, which is incredibly

:02:18.:02:22.

competitive, in tooth lighting and healthcare was the right decision?

:02:22.:02:27.

Yes. The group has made a significant strategic shift across

:02:27.:02:32.

the group to refocus on the areas of strength within healthcare,

:02:32.:02:37.

lighting and consumer portfolio. Myself and the City will come their

:02:37.:02:44.

excerpts from a television and others. They had lower margins and

:02:44.:02:49.

were facing significant competition from the Far East. Her what is the

:02:49.:02:55.

outlook now? In healthcare, they are pushing for innovated new

:02:55.:02:59.

equipment but that is dependent of government spending which could be

:02:59.:03:04.

dodgy in the years ahead. Lighting, they're really going for the

:03:04.:03:11.

lighting. Aren't they winning their? Within the healthcare

:03:11.:03:15.

business, there is a huge amount of barring an innovation focus on key

:03:15.:03:20.

areas where there is potential for growth in emerging markets and also

:03:20.:03:25.

to provide better healthcare within Europe and North America. That is

:03:25.:03:30.

showing some benefits in markets against main competitors. In the

:03:30.:03:36.

lighting industry, they are faced with a revolution. A shift to Elly

:03:36.:03:42.

debased lighting products. Fill-ups have made a quick moves to

:03:42.:03:49.

restructure. Investing heavily to get a lead in lighting fittings and

:03:49.:03:57.

products. What about government spending on healthcare - how

:03:57.:04:02.

dependent is that size of the business dependent on governments

:04:02.:04:10.

are doing well. Many economies are not in that position? Nearly 45% of

:04:10.:04:15.

revenues from healthcare come from North America. Clearly, the fiscal

:04:15.:04:18.

cliff and concern about government spending have created uncertainty

:04:18.:04:28.
:04:28.:04:31.

resulting some hospitals reconsidering. More requirements

:04:31.:04:38.

for healthcare services means for overtime he will pick up. There are

:04:38.:04:46.

particular challenges. Thank you for your time. One get the results

:04:46.:04:54.

from Philips I will be tweaking the details. -- tweeting. Later, we

:04:54.:04:58.

will be interviewing the chief executive of Philips about their

:04:58.:05:04.

numbers. Just after they are released. And jute union if not a

:05:04.:05:11.

colony on Twitter. -- do tune in. Global auto makers have flocked to

:05:11.:05:13.

China's premier car show in Shanghai, affirming its importance

:05:13.:05:16.

as the world's largest vehicle market. Foreign brands are

:05:16.:05:19.

particularly popular there - on Friday Volkswagen said it plans to

:05:19.:05:22.

increase its Chinese workforce by a third to more than 100,000 people

:05:22.:05:29.

by 2018 as the company continues to expand production capacity in China.

:05:29.:05:33.

And General Motors will add four new plants in the next three years

:05:33.:05:42.

to bring its production capacity to 5 million vehicles a year. Will

:05:42.:05:46.

invest $11 billion in China by 2016, but did not break out the cost of

:05:47.:05:51.

the new plants. Andrew Thomson, Head of Automotive for China and

:05:51.:05:54.

Asia Pacific at KPMG explained the allure of the Chinese market.

:05:54.:05:57.

going to be very, very competitive, but it's more stable. You don't

:05:57.:06:01.

have the volatility of the market and that allows you to plan much

:06:01.:06:04.

more effectively, to resource properly. You are investing in line

:06:04.:06:07.

with the market, and not necessarily deploying in lots of

:06:07.:06:17.

dollars that subsequently end up being wasted. We will have a more

:06:17.:06:21.

from the Auto Show in China as the week progresses. Japan has been

:06:21.:06:24.

given official approval to join negotiations for a Us-led free

:06:24.:06:26.

trade pact. It's called the Trans- Pacific Partnership. Trade

:06:26.:06:29.

ministers from the eleven nations already participating in the trade

:06:29.:06:32.

deal met in Indonesia over the weekend. The membership is central

:06:32.:06:36.

to Prime Minister Shinzo Abe's plans to open the economy to more

:06:36.:06:39.

competition and revive growth. Mariko Oi is in our Singapore

:06:39.:06:49.
:06:49.:06:51.

bureau. Tell more about how important this is to Japan? It is

:06:51.:06:55.

quite significant. Japanese business leaders have been pushing

:06:55.:07:00.

the government to join these free- trade talks for a few years now.

:07:00.:07:06.

Big exporters will no doubt benefit by having access to huge markets.

:07:06.:07:11.

11 countries have been negotiating a with Japan's in Mosman, it will

:07:11.:07:16.

cover almost 40% of the global economy. One third of world trade

:07:16.:07:22.

as well. There has been a stronger position, especially in Japan, --

:07:22.:07:27.

strong opposition, especially from farmers. They have been or posing

:07:27.:07:31.

it. The Japanese government is expecting to negotiate on behalf of

:07:31.:07:39.

them. -- opposing. They have been some opposition from American

:07:39.:07:43.

lawmakers as well for allowing Japanese carmakers to be a will to

:07:43.:07:48.

access the US market. Nevertheless, the fact that Japan has been

:07:48.:07:54.

welcomed, which was widely expected, is still a significant step.

:07:54.:07:57.

other news: German airline Lufthansa has cancelled the

:07:57.:08:01.

majority of its flights scheduled for Monday due to a strike over pay.

:08:01.:08:05.

The airline said only about 20 of its flights would run as planned on

:08:05.:08:11.

Monday, out of more than 1,700 originally scheduled. German

:08:11.:08:15.

airports affected are Frankfurt, Munich, Dusseldorf and Hamburg.

:08:15.:08:18.

Lufthansa says it is offering free alternative bookings. Last week

:08:18.:08:22.

Lufthansa rejected union demands for a 5.2% wage increase over the

:08:22.:08:26.

next 12 months. Strikers are also looking for guarantees over job

:08:26.:08:31.

cuts. Commercial airline flights moved smoothly throughout most of

:08:31.:08:35.

the US on Sunday, the first day air traffic controllers were subject to

:08:35.:08:39.

furloughs resulting from deep government spending cuts. But the

:08:39.:08:41.

nightmarish flight delays and cancellations that the airline

:08:41.:08:45.

industry had warned of did not materialize. The real test will

:08:45.:08:50.

come on Monday, when traffic picks up. Passengers are adviced to stay

:08:50.:08:54.

in contact with their airlines. And airlines have also directed their

:08:55.:08:59.

customers to tell the FAA to find other ways to cut costs. Cyprus'

:08:59.:09:02.

central bank says all insurance firm deposits in the bailed-out

:09:02.:09:10.

country's second largest bank will now take a loss of 27.5%. The bank

:09:10.:09:12.

also said late Sunday that the savings of unregistered financial

:09:12.:09:15.

companies, charities and some educational institutions kept in

:09:15.:09:18.

the Bank of Cyprus will also take an identical loss, but only on

:09:18.:09:28.
:09:28.:09:28.

deposits of over 100,000 euros - that's just over $131,000. That

:09:28.:09:32.

deposit loss was a key element in a deal that the country struck with

:09:32.:09:35.

its euro area partners and the International Monetary Fund last

:09:35.:09:44.

Download Subtitles

SRT

ASS